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HMRC internal manual

VAT Export and Removal of Goods from the UK

Fraud: valuations

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

It is fairly common practice for the value of goods exported to certain destinations to be under declared on export documentation. There are a number of reasons for this including the deliberate disguising of the value of the goods to avoid import duties and theft in the importing country. The deliberate undervaluation of goods on export entries is an offence for Customs purposes and any instances should be reported to your local Excise and International Trade Team.

From a VAT viewpoint you should compare the values shown on the export documentation with the values shown in the trader’s accounting records – any significant differences should be questioned and discussed with the Export and Removal of Goods Unit of Expertise (UoE) – see VEXP10600 for contact details. The manipulation of valuations for exports and removals can also be a means of avoiding other taxes. You should be prepared to check the valuation of similar goods sold on the UK market and question the reason for any differences – particularly in the case of associated companies.